MILK
Substantial strength was seen in Class III futures at the end of the week. This was surprising as underlying cheese prices remained unchanged. Some of the strength might have been due to traders wanting to close out some of their positions at the end of the month. Some of the strength might have been the perception of higher prices over time. Class III futures were strong ahead of spot trading and further strength after trading. The July through October contracts moved above $20.00. Class IV futures saw limited trading activity and limited price gain.
The April Agricultural Prices report showed the average corn price at $4.39, an increase of 3 cents per bushel from March. This compares to $6.70 per bushel in April 2023. The premium/supreme hay price was $260.00 per ton, down $11.00 per ton from March and down from $315.00 per ton a year ago. The All-milk price was $20.50 per cwt, down $0.20 per cwt from March and down $0.10 per cwt from April 2023. These prices are used in calculating the income over feed for the Dairy Margin Coverage program. The soybean meal price has not yet been released and may not be released until Monday by the FSA. The alfalfa hay price average was $195.00 per ton, unchanged from March and down $93.00 per ton from a year ago. The soybean price was $11.80, unchanged from March and down $3.10 per bushel from April 2023. The average price for milk cows was $2,120 per head compared to $1,720 a year ago.
AVERAGE CLASS III PRICES
| 3 Month: | $19.47 |
| 6 Month: | $19.89 |
| 9 Month: | $19.65 |
| 12 Month: | $19.42 |
CHEESE
For the week, blocks declined 6 cents with 14 loads traded. The barrel price decreased 4 cents with eight loads traded. The dry whey price increased by 1.50 cents with 11 loads traded. Cheese prices declined but the July Class III contract moved to the highest close in the past two weeks. August and later contracts closed at new contract highs.
BUTTER
For the week, butter price declined by 3.25 cents with nine loads traded. The Grade A nonfat dry milk price decreased by 0.75 cent with nine loads traded. The weakness early in the week was short-lived as buyers wanted to take advantage of the low price. However, there were few loads purchased at the lower price. Price may regain the loss and continue the trend higher as demand slowly increases.
OUTSIDE MARKETS SUMMARY
July corn closed down 2.50 cents per bushel at $4.4625, July soybeans closed down 4.75 cents at $12.0500 and July soybean meal closed up $1.10 per ton at $364.70. July Chicago wheat closed down 2.50 cents at $6.7850. August live cattle closed down $1.33 at $178.45. July crude oil is down $0.76 per barrel at $77.15. The Dow Jones Industrial Average is up 575 points at 38,686 with the NASDAQ down 2 points at 16,735.
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